February 16: NSE Bans Trading in 12 Stocks as F&O Limits Exceeded

21 Mar 2024 , 05:48 PM

On February 16, 2024, the National Stock Exchange (NSE) imposed a ban on trading in futures and options (F&O) for 12 stocks, as they exceeded 95% of the market-wide position limit (MWPL).

The affected stocks are Aditya Birla Fashion and Retail, Ashok Leyland, Balrampur Chini Mills, Bandhan Bank, Biocon, Canara Bank, Delta Corp, Hindustan Copper, India Cements, Indus Towers, SAIL, and ZEEL.

While these stocks are under the F&O ban, they remain available for trading in the cash market. The NSE updates the list of securities under the F&O ban on a daily basis.

Derivative contracts for the mentioned securities have surpassed 95% of the MWPL, leading to their inclusion in the F&O ban period by the stock exchange.

The NSE has mandated that clients/members can only trade in the derivative contracts of these securities to reduce their positions through offsetting positions. Any increase in open positions will result in appropriate penal and disciplinary action.

No fresh positions are permitted in the F&O contracts for these stocks during the ban period imposed by the stock exchanges. On the market front, the Sensex rose over 225 points to surpass the 72,000 mark, while the Nifty settled close to 22,000 on Thursday.

The 30-share BSE Sensex gained 227.55 points or 0.32%, closing at 72,050.38 points, with intra-day trade ranging from 71,644.44 to 72,164.97 points. The broader NSE Nifty recorded a gain of 70.70 points or 0.32%, concluding at 21,910.75 points.

Market heavyweights like M&M, HDFC Bank, and SBI contributed to the positive performance, and both Sensex and Nifty experienced a positive bias with range-bound trading during the day. The BSE smallcap index rose by 1.24%, and the midcap index closed with a gain of 0.93%.

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